Local Car News #Update

Over 20 Automobile companies, including Volkswagen Group, BMW and a host of other automotive industry operators, investors and consultants have reached a compromise on the bright prospects of domesticating aspects of their manufacturing and supply value chain in Nigeria soon.

The Chairman/Managing Director of Volkswagen Group South Africa, Thomas Schaefer, who led the delegation of foreign investors on a visit to Nigeria, said their plan was to replicate the South African experience in the country.

Speaking during a courtesy visit to the minister of industry, trade and investment, Okey Enelamah’s office in Abuja, Schaefer revealed the intent of the joint Auto brands.

“The plan is to have short, medium and long-term approaches that target growth in the manufacture of cars in Nigeria, similar to the over 60,000 cars produced per annum in South Africa,” he said.

Shaefer also requested that Nigeria’s new automotive policy be passed into law as it has the potential to activate their investment plans and unlock the growth of Africa’s automotive sector.

The international investors in the African automotive industry visited Abuja, Lagos and Edo State to engage various interest groups in the country, and also gain insight into the business opportunities and investment environment in the Nigerian automotive sector. They also used the opportunity to identify areas they could assist in shaping national and state policies to support the auto industry, particularly in the area of domesticating manufacturing in Nigeria.

Other Auto industry interest groups in attendance at the meeting included Nissan, Bosch, BMW and Uber. Financial institutions were also in attendance, some of them include: Standard Bank of Africa, International Finance Corporation, Graffitti, Deloitte, Actis.

The Vice President, Yemi Osinbajo assured the investors that the government has the political will to implement the auto policy.

“There have been some difficulties with the implementation approach,” the VP said, “but this is the time we have considerable political will. If we can get the individual components right, we should be able to fly with this policy.”

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